Cash Management integrates cash transactions from various sources like Receivables, Payables, Treasury and creates reconciliation accounting entries after matching transactions with Bank Statements.
Cash Management receives payment information from Accounts Payables and you can then clear and reconcile payments. You can also create miscellaneous non-invoiced transactions, such as bank charges, debits, or credits.
Similarly, Cash management gets receipt information from Accounts Receivables. Using Cash Management, you can clear and reconcile receipts and create miscellaneous (non-invoiced) transactions, such as interest, debits, or credits.
Similarly, Cash management gets investment and deal information from Treasury. Using Cash Management, you can clear and reconcile investments.
You can get cash transactions from other sources like payroll or intercompany system.
Transactions are cleared and reconciled against a bank statement; reconciliation accounting entries are created after matching transactions and sent to General Ledger.
One of the most recurring theme in global transaction banking is the increasing integration of cash management and trade finance products.
This is possible only if the organization has a well defined Centralized Treasury Management System. This brings tangible benefits to both corporates and financial institutions.
To Learn more about how treasury and cash management integration can benefit organizations, please see our video on Treasury Management Process.
Before we dive into cash management, let us fist understand what we mean by cash and what constitutes cash in context of cash management process.
Effectively using cash management with trade finance products brings tangible benefits to both corporates and financial institutions.Learn the various benefits of cash management process.
Introduction to Bank Reconciliation Process
These set of articles provide a brief introduction to Bank Reconciliation Process. This topic not only discusses the meaning of bank reconciliation process but also discusses how this process in handled in new age ERPs and Automated Reconciliation Systems.
What is Invoice to Cash Process
In this article, we will explore the business process area known as; Invoice to Cash; Also known as I2C. Learning objectives for this lesson are: Meaning of Invoice to Cash Process; Sub Processes under Invoice to Cash; Process Flow for Invoice to Cash; Key Transactions Fields; Key Setups/Master Data Requirements.
So many codes in the lines that are there in a Bank Statement. It contain lots and lots of meaningful information that can help automated many tasks. Explore more!
In the previous article we talked about the meaning of the account reconciliations. Now as you now the definition of account reconciliation, in this article let us see why it is carried out.
Introduction to Cash Clearing Process
Unravel the mystery behind clearing accounts. Learn why clearing accounts are used in finance and accounting. Learn why so many clearing accounts are defined in ERPs and Automated Accounting Systems.
What is Account Reconciliation?
Before you understand the Bank Reconciliation Process it is important to understand what is account reconciliation and why it is carried out.
What are the various sources of cash in an organization. Which sources increase the cash available with the enterprise and which sources results in outflow of the cash? Let us explore!
© 2023 TechnoFunc, All Rights Reserved